The SAC audit revealed a number of problems and shortcomings in the work of regional SECs

The Supreme Audit Chamber of the Republic of Kazakhstan has completed an audit of the activities of Social-Entrepreneurial Corporations and their impact on regional development. The results of the state audit were reviewed at a meeting chaired by Alikhan Smailov.

As the audit showed, problems and shortcomings are accumulated within the structures of the SECs, which leads to their systemic inefficiency. Such a situation has arisen due to the lack of comprehensive coordination and regulation of their work, as well as proper oversight by the Ministry of National Economy.

Thus, SECs are not integrated into the state planning system, their development plans are nominal and not subject to external evaluation, and their activities do not affect the assessment of the effectiveness of akimats.

During the meeting, the SAC Chairman indicated that the MNE RK, being the authorized state body, must bring order to the activities of the SECs.

“You must determine and develop unified approaches to what the SECs should be engaged in. Are they development institutions or what? What is their social role in the regions? What is their role in attracting investment? What instruments should they use? Regarding the issuance of loans – what can they be used for, and what can they not be used for? A unified position must be developed,” noted Alikhan Smailov.

He emphasized that currently SECs engage in whatever they themselves consider appropriate.

“In the regions, they do whatever they decide. Often this contradicts even the Entrepreneurial Code,” said the Chairman of the SAC.

According to the audit report, over the past 5 years more than 528 billion tenge of budget funds have been allocated to SECs, of which more than 288 billion tenge went toward lending to business entities. However, instead of implementing investment projects capable of contributing to regional development, SECs practice placing the funds received into bank deposits, as well as diverting them to joint commercial projects with business structures that have low social impact.

At the same time, despite the growth in state funding, the problem of persistent unprofitability of SECs remains. The accumulated loss of the audited SECs at the beginning of 2025 amounted to more than 209 billion tenge, a sevenfold increase compared to 2020.

Dividend payments are unstable. For example, the total amount received from SECs for 2024 was just under 0.5 billion tenge, almost 4 times less than the results of 2023.

The auditors noted that SECs often participate in purely commercial projects by providing support to individual entrepreneurs.

For example, SEC “Ertis,” under the guise of investment projects, is implementing commercial housing construction worth 16.6 billion tenge, where violations of 3.3 billion tenge were identified by the audit.

Land plots were transferred to SEC “Aqjaiyq” for the implementation of the declared investment projects, but they were ultimately either not developed or reoriented toward other commercial purposes.

SEC “Aktobe” over the past 3 years allocated a loan for the expansion of production of a single private company. In total, it received loans and subsidies from the state amounting to 11.2 billion tenge. At the same time, for the approval of the loan, a person affiliated with this company was allowed onto the Project Selection Commission, and the lending itself was carried out with violations and without solid collateral.

At SEC “Semey,” projects are selected without proper assessment and risk analysis for the sake of rapid fund disbursement.

Control inspections of stabilization funds during the audit revealed improper storage conditions for products, limited assortment, as well as the formation of stabilization funds with goods that are not in demand.

The inefficiency of SECs in managing regional stabilization funds, trade and procurement activities, and lending to entrepreneurs under the “working capital scheme” makes them incapable of influencing the stabilization of food prices.

Overall, the state audit revealed:

• financial violations amounting to 138 billion tenge;
• inefficient planning – 14.5 billion tenge;
• inefficient use of budget funds and assets – 33.6 billion tenge.

Materials on 14 cases are planned to be submitted to law enforcement agencies.